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BHP has signed a charter agreement with COSCO Shipping Group for two 210,000 DWT ammonia dual-fuel bulk carriers, marking another step in the Australian miner’s decarbonisation strategy.
The vessels are scheduled for delivery from 2028 and will be used to transport iron ore from Western Australia to North Asia, the firm said in a statement on its website on Wednesday.
“The five-year time charter contracts are expected to contribute towards a reduction in the GHG emissions intensity of BHP chartered shipping,” it said.
BHP is now developing an ammonia bunkering plan to source fuel for the vessels.
The announcement comes as ports in Western Australia, including the major iron ore export hub at Port of Dampier, move to enable ammonia bunkering.
Pilbara Ports recently published its Pilbara Clean Fuels Bunkering Hub roadmap, outlining plans to establish the country’s first low-carbon marine fuel supply chain.